Business leaders in Texas once again said they are struggling to
hire qualified workers in the latest Texas
Manufacturing Outlook Survey released monthly by the Dallas
Federal Reserve.

The report includes anonymous comments from survey respondents
working in various manufacturing industries regarding how their
businesses are doing.

Most respondents detailed various setbacks due to Hurricane
Harvey in September. But some also said they continue to have a
hard time finding qualified candidates.

Here are some choice quotes from the report:

"The storm caused the need for repairs in the refinery. This
backlog of field and shop work repairs will last 30 to 60 days.
We cannot hire enough qualified people to fill the need for this
time period," one respondent from the fabricated metal product
manufacturing industry said.

"There is a labor shortage in Central Texas. We are unable to
find qualified candidates. This is a factor among most American
manufacturers I speak with," a respondent in the miscellaneous
manufacturing industry said.

"We are having issues with our North American production due
to a shortage of labor and are transferring more production to
China," said another in the food manufacturing industry.

Respondents have long pointed to a shortage of quality labor. (A
respondent
in the July 2016 survey once said, "Entry-level
candidates cannot read or follow instructions. Most cannot do
simple math problems. What is wrong with the educational
system?")

Theoretically, the idea of labor quality becoming a pressing
issue for employers suggests the job market is moving from a
period of weak demand after the Great Recession to one of tight
supply. And that, theoretically, points to higher wages for
workers. The basic thinking is that when employers have a hard
time finding quality workers, they end up having to shell out
more money to attract them.

That last part, however, doesn't seem to be happening. The Dallas
Fed manufacturing survey data suggests that September saw
faster employment growth and longer work weeks, but "wage
pressures" held flat.

The employment index came in at 16.3 in September, which was its
highest level since April 2014. The hours worked index rose by 4
points to 18.4. And 28% of firms noted net hiring,
while 11% noted net layoffs, according to the report.

The wages and benefits index, however, was "essentially
unchanged" at 26.4.